The benefits of opening a business savings account

Small and medium-sized enterprises (SMEs) don't want to waste cash and by that very same logic they should ensure their money is working as hard for them as possible.

No SME would throw money out the window, so why would a business leave its excess finance in a current account when it could be earning more in a savings account?

Money kept in a current account will barely grow but by investing surplus funds into a savings account, SMEs can ensure their pots begin to increase as they benefit from competitive interest rates.

Good cash flow is all about managing money in the most efficient manner and there is arguably no better way to be cash-savvy that to invest in a savings account.

So when a company has decided it is indeed the best way forward to open up a business savings account, the next step is to pick the most suitable option.

As a general rule, flexible accounts that allow businesses to dip in and out of their savings on a regular basis will have a less competitive interest rate than those that lock it away for a fixed period.

But that makes sense as flexibility is part of a great deal that requires a little reimbursement, making it the perfect choice for companies that do need to call on their savings from time-to-time.

On the other hand, a one-year fixed rate savings account will ensure the company takes advantage of a competitive interest rate so the pot can grow more steadily.

Aldermore's One Year Fixed Rate Business Savings Account is fast and simple to open in just 15 minutes with a minimum deposit of £1,000.

There are no fees or charges for day-to-day services and companies can rest assured it is covered up to £85,000 by the Financial Services Compensation Scheme.

So, when thinking about SME cash, be smart and savvy and invest excess funds in an account that is designed to suit the company's needs.

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